Please help. probably easy to answer?

well im trying to put a background on an image and so far i have it all cut out with the little grey and white squares where i want the background to show up. but when i paste the other image in to be the background it shows up sooooooo small. do you know how to make it make it larger? thank you very much for your help
by the way im using cs4 if that helps. thank you

Menu> edit> transform>scale

thank you very much . but when i make the background image larger to fit, it is very i think you call it pixellated? with lots of little squares? sorry im really new at this.

I am iPod to much to detail but increase yh image resolution first if possible..... Someone else can tell you how gtg good luck

ok thank you very much